PM Modi Announces GST 2.0 with Rate Cuts by Diwali

In a move aimed at strengthening the Indian economy, Prime Minister Narendra Modi has announced the rollout of GST 2.0, featuring significant rate cuts on everyday-use goods. This initiative, revealed during his Independence Day speech, is part of broader reforms to the GST regime, targeting reduced litigation and evasion.

Expert Opinions on GST Reforms

Tax experts have lauded the Prime Minister's vision for GST 2.0 as a timely and strategic step towards building a resilient economy. Saurabh Agarwal, Tax Partner at EY India, emphasized the importance of these structural reforms in mitigating global trade tensions and enhancing export competitiveness.

Impact on MSMEs and Consumption

Krishan Arora from Grant Thornton Bharat highlighted the potential benefits of rate rationalization for MSMEs, noting that lowering GST rates on daily consumption items could spur demand and reduce end-product prices.

Future Meetings and Expectations

With GST collections expected to exceed Rs 22 lakh crore in FY 2025-26, experts anticipate further discussions in upcoming GST Council meetings to refine the tax structure, including possible eliminations of certain tax slabs and clarifications on credit provisions.